The only way is up for Brunswick housing prices

The median house price in the June quarter of this year was the highest on record for the suburb

One of two townhouses within this converted church in Blyth Street was sold after auction for $1.4 million last month. The three bedroom/two bathroom residence had been quoted for between $1.25 million and $1.325 million. Photo: Jellis Craig

THE Covid-19 pandemic has proved to be little more than a hiccup for the Brunswick property market with house prices increasing by a remarkable 40.3% since the depths of last year’s lockdown and expected to continue rising.

The median house price in Brunswick rose by 5.2% in the second quarter of 2021 alone to $1.368 million, according to the Real Estate Institute of Victoria, comfortably outstripping the whole of metropolitan Melbourne, where the median house price of $1.01 million was barely unchanged from the previous quarter.

During the long winter lockdown last year, Brunswick’s median house price sunk below $1 million for the first time in more than 12 months. But since the lockdown ended in October, there has been a strong rebound and the median price in Brunswick is now the highest on record. It is 21.7% higher than in the second quarter of 2020.

It is a similar story for Brunswick West and Brunswick East.

While the lockdown did not have as much impact on Brunswick West — the median price fell by 4.6% during that period — strong growth has since seen it soar to $1.555 million in the second quarter. This is 29.6% higher than the same quarter last year, and 9.5% above the first quarter of this year.

In Brunswick East, the median price for the second quarter was $1.55 million, which is a 7.3% increase for the quarter and 2.6% higher than the same time last year.

Greg Cusack, director of Jellis Craig Brunswick, said while economists had held dire predictions for the property market coming out of the lockdown, that had not been the case.

He said a combination of low interest rates, buyers who are cashed up and pent up demand after lockdown had all fuelled the “amazing” growth of the first half of 2021.

The Brunswick-Coburg area was in high demand from first home buyers in particular, he said.

“We’re finding massive movement from the east to the north, people in their late 20s and 30s, double income who are perhaps renting close to the city and who are attracted to the strong energy of Brunswick and Coburg and love the period homes and the affordability of the area.

“I’ve sold three homes in the past few weeks to people coming from Brighton who are drawn here by the vibe, the restaurants and lifestyle.”

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In the apartment sector, Brunswick’s median price was a touch lower at $596,000 in the second quarter. This is 3.7% higher than the corresponding period in 2020.

Brunswick West’s median is $520,000 and Brunswick East is sitting at $600,000.

Mr Cusack said prices traditionally softened during winter and he predicted that when the spring auction season opened, the market would shake off the impact of the current lockdown.

“Buyers and vendors are getting more frustrated but I hope they will understand these lockdowns will be part of the landscape for the next 12 months until we’re all vaccinated and we will have a strong bounce back like October last year,” he said.

“Inquiries are still strong.”